Farmers may suffer a loss even when there is a good harvest. Does your supply-demand analysis provide an answer to this paradox?

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Solution

Owing to their poverty (and immediate need for cash) farmers are often driven to a distressed sale of their produce. But good harvest causes a glut (of supply) in the market. This causes a price-crash. The price may fall so much that the total revenue of the farmer decreases even when his output/sale is more than before.

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Similar questions

Q. Statement: During pre-harvest kharif season, the government has decided to release vast quantity of food grains from FCI.
Assumptions:
I. There may be a shortage of food grains in the market during this season.
II. The kharif crop may be able to replenish the stock of FCl.
III There may be a demand from the farmers to produce kharif crop immediately after harvest.

Experts please can I get a help for my economics project .

Topics are -

1) make a list of products for weight you think demand in price inelastic and price elastic . Specifying the reason you may think relevant for your analysis.

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